Despite escalating trade hostilities between the US and China, global stock markets managed a surprising rebound on Tuesday.

The previous week saw President Donald Trump spark global concerns after dramatically unveiling a chart in the White House garden, laying out the range of tariffs being imposed on various countries. This triggered a sharp downturn in global markets and rekindled fears of a looming recession.

By Wednesday, steep tariffs were set to kick in on imports from several nations. Notably, Chinese goods would face a shocking 104 percent tariff, a response to Beijing’s own retaliatory measures. The move fueled anger in Washington.

China, unyielding in its stance, condemned the US approach. A spokesperson from the commerce ministry accused Washington of “blackmail” and vowed to “fight it to the end.”

Trump, however, maintained that Beijing was under pressure to make the first move.

“We are waiting for their call. It will happen!” he posted online, asserting that China “wants to make a deal, badly, but they don’t know how to get it started.”

China Holds Firm as Global Leaders Urge Restraint

The rhetoric continued to heat up. China hit back at comments from US Vice President JD Vance, who claimed the US had long relied on borrowing from “Chinese peasants.”

Meanwhile, European leaders tried to cool the growing friction. EU chief Ursula von der Leyen urged calm during a phone call with Chinese Premier Li Qiang. She emphasized the importance of economic stability and avoiding further escalation.

In response, Li Qiang assured that China was well-prepared to weather the storm.

“China can fully hedge against adverse external effects, and is fully confident of maintaining sustained and healthy economic development,” he stated.

The EU, which has faced Trump’s criticism for its own tariffs, could announce its response to new US duties—currently at 20 percent—next week.

French President Emmanuel Macron appealed to Trump to back down. Still, he signaled readiness if push came to shove.

“France and Europe never wanted chaos,” he said, adding, “so be it,” if retaliation became necessary.

In response to earlier tariffs on steel and aluminum, the EU is planning to slap 25 percent duties on a range of American exports, including soybeans, motorbikes, and make-up, according to an internal document.

Signals of Softening Amid the Showdown

While Trump has stood firm, signals emerged that his administration remains open to negotiation.

White House economic advisor Kevin Hassett told Fox News that the US is prioritizing talks with allies like Japan and South Korea.

In a sign of renewed optimism, Wall Street rallied Tuesday. Trump credited a “great call” with South Korea’s leader for the market uptick.

European indices jumped over two percent, while Asian markets rebounded after heavy losses on Monday.

“Investors took advantage of lower valuations and grew more optimistic about US tariff negotiations,” said Axel Rudolph, analyst at IG.

Trump continues to argue that tariffs will revive American manufacturing by pushing foreign firms to set up operations in the US. But experts remain skeptical, calling the strategy inconsistent and harmful.

Tesla CEO Elon Musk, a vocal critic of the trade policy, ridiculed Trump’s top trade advisor Peter Navarro as “dumber than a sack of bricks.”

Musk pushed back after Navarro dismissed Tesla as “a car assembler” dependent on cheap imported parts.

Despite the growing backlash, Trump shows no signs of backing down. His trade chief reported that nearly 50 countries have reached out to discuss the policy and explore new trade terms.

Jamieson Greer noted that some, including Argentina, Vietnam, and Israel, have even offered tariff reductions to ease tensions.

ALSO READ: Prince Harry’s Security Appeal: Lawyer Cites Al-Qaeda Threats, Media Risks In UK Court